On March 18, 2025, Steven Kirz, a Senior Partner at West Monroe, shared an Op-Ed in UNLEASH, emphasizing a transformative shift in the perspective of Chief Human Resource Officers (CHROs) regarding artificial intelligence (AI). He argues that it is essential for CHROs to view AI not merely as a technological asset, but as a crucial component of talent management.

Many organizations deploy AI solutions, yet the results of such initiatives are varied. According to a recent study, 42% of companies indicated they had not witnessed a significant return on their AI investments. Kirz highlights that this discrepancy often arises from how AI is perceived and integrated into business strategies.

‘When CHROs treat AI as just another IT tool and relinquish its deployment and management, they miss an opportunity to help their C-Suite colleagues achieve the organization’s strategic objectives.’

By considering AI as an extension of the workforce, CHROs can facilitate enhanced productivity rather than focusing solely on automation. Kirz argues for a transition in how businesses justify AI investments. Instead of using AI to supplant roles as a cost-cutting measure, it should be employed to elevate existing employees’ capabilities.

Broadening the Talent Definition

A successful workforce comprises various talent sources, including employees, contract labor, outsourced workers, and AI solutions. Strategically aligning tasks with the most suitable talent type can significantly enhance organizational performance. Kirz asserts that CHROs must champion a holistic management approach that encompasses all these talent avenues.

For instance, tasks traditionally outsourced may soon be performed more efficiently by in-house staff trained to utilize AI tools. The in-house teams must adapt to apply AI more effectively, thereby reshaping service delivery models.

The Emergence of AI as Digital Co-workers

AI agents, which function similarly to employees but are driven by algorithms, are set to redefine workplace dynamics. As Marc Benioff pointed out, ‘We are the last generation to manage only humans.’ This evolution necessitates CHROs to establish guidelines for integrating these digital workforce members effectively.

Building a Culture of Innovation through Training

To ensure that employees can effectively use AI, the CHRO’s role extends to fostering a culture rich in prompt engineering and continuous learning. By empowering employees through training that emphasizes the strategic use of AI, organizations can maintain a competitive edge in their industries.

Kirz emphasizes that a seamless integration of AI training within corporate culture will transform employees into proactive innovators rather than passive users of technology.

Conclusion: The Strategic Shift for CHROs

The future of work will hinge on how organizations approach talent management amid the rise of AI. Acknowledging AI as a form of talent mandates a reevaluation of HR’s strategies to encompass all facets of workforce management. By adopting this perspective, CHROs can become pivotal in driving their organizations’ AI transformations.